Mesta v. Commissioner
United States Board of Tax Appeals
Petitioner's wife instituted an action against him for absolute divorce. While it was pending the parties thereto entered into a written agreement providing for a property settlement. Pursuant to the terms of the agreement petitioner transferred to his wife certain securities having a value in excess of their cost to him and she surrendered all of her rights to support and maintenance and to share in his property at his death.
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Petitioner's wife instituted an action against him for absolute divorce. While it was pending the parties thereto entered into a written agreement providing for a property settlement. Pursuant to the terms of the agreement petitioner transferred to his wife certain securities having a value in excess of their cost to him and she surrendered all of her rights to support and maintenance and to share in his property at his death. Held, the rights received by petitioner under the agreement had no fair market value, and he realized no taxable income as a result of the transaction.
1Opinion of the Court
*934OPINION.
Mellott :
The Commissioner determined a deficiency in petitioner’s income tax for the year 1935 in the amount of $31,163.18. The facts are found to be as stipulated. For present purposes the following summary will suffice.
Petitioner, a resident of Pittsburgh, Pennsylvania, duly filed his return of income for the taxable year with the collector for the twenty-third collection district of Pennsylvania. The tax shown to be due was paid. He had been married on August 19,1921, and he and his wife lived together until October 12, 1934, on which date they separated. There was no issue as a…
2Cases cited7 opinions
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- Humes v. United StatesSupreme Court of the United States · 1928
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3Cited by14 opinions
- Glen v. CommissionerUnited States Tax Court · 1966
- Commissioner of Internal Revenue v. MestaCourt of Appeals for the Third Circuit · 1941
- Bishop v. CommissionerUnited States Tax Court · 1971
- Commissioner of Internal Revenue v. HalliwellCourt of Appeals for the Second Circuit · 1942
- Commissioner v. MarshmanCourt of Appeals for the Sixth Circuit · 1960
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